Shares of Pacific Andes Resources Development <PACF.SI>, a Singapore-listed frozen fish supplier, rose as much as 2.9% on Thursday after it bought a 19.76% stake in Australian salmon farmer Tassal Group <TGR.AX> for A$51.7 million ($66.9 million).
At 11:31 a.m., Pacific Andes shares were up 1.5% at $0.345 on a volume of 3.9 million shares.
"Investors may see it as a good move because they are increasing their exposure to the fishing area and diversifying away from their existing business, as well as their reliance on(subsidiary) China Fishery,” a local analyst said.
Pacific Andes acquired 28.9 million shares in Tassal at A$1.79 each, which will be funded entirely by internal resources, the firm said in a statement.
“We view this deal positively as it offers a complementary fit into PARD’s current operations,” OCBC Investment Research said in a report.”
“Consumption of seafood is still on an uptrend and this transaction will aid its positioning in this sector in the coming years,” OCBC added.
The brokerage has a “buy” rating on Pacific Andes and a target price of $0.40.
